... more and more economists were jumping on the "bandwagon" of an extended Twist.

The move would serve several purposes, but would mainly show the Fed's resolve to act and help shore up confidence, said Millan Mulraine, economist at TD Securities.

The current $400 billion Twist program is set to expire at the end of June... analysts said the Fed has about $180 billion of short-term Treasurys left to sell. There was some speculation that the Fed might buy mortgage-backed securities in the new round.